ITALY - LIBERTAD ACT TITLE III WAIVER REVIEW

C O N F I D E N T I A L ROME 002517

SIPDIS


DEPT. FOR WHA/CCA

E.O. 12958: DECL: 06/28/2014
TAGS: PREL PHUM ETTC CU IT HUMAN RIGHTS
SUBJECT: ITALY - LIBERTAD ACT TITLE III WAIVER REVIEW

REF: STATE 135512

CLASSIFIED BY: A/POL MINISTER-COUNSELOR GARY ROBBINS FOR REASONS 1.5 (B
) AND (D).

SUMMARY
--------------


1. (C) MISSION BELIEVES RENEWING THE TITLE III LIBERTAD ACT
WAIVER WOULD ENHANCE THE POSSIBILITY OF INCREASED US-ITALIAN
COOPERATION ON CUBA AND HAVE A POSITIVE IMPACT ON ALREADY
STRONG BILATERAL RELATIONS WITH ITALY. ITALIAN POLICY TOWARDS
CUBA FOLLOWS THE EU COMMON POSITION ON CUBA, WHICH IS BASED
ON "CONSTRUCTIVE ENGAGEMENT." WHILE IN THE EU PRESIDENCY IN
JULY 2003, ITALY LED THE EU TO CONDEMN STRONGLY THE CUBAN
GOVERNMENT FOR ITS NEGATIVE ATTITUDE TOWARDS EU MEMBER STATES
AND FOR THE DETERIORATION OF HUMAN RIGHTS ON THE ISLAND.
FURTHER BILATERAL COOPERATION ON CUBA POLICY COULD BEST BE
ENSURED BY RENEWING THE TITLE III LIBERTAD ACT WAIVER. END
SUMMARY.

RECENT ITALY-CUBA ECONOMIC ACTIVITY
--------------


2. (C) ON JUNE 25, WE DISCUSSED ITALY-CUBA RELATIONS WITH
PAOLO MIRAGLIA, MFA OFFICE DIRECTOR FOR CENTRAL AMERICA AND
THE CARIBBEAN. MIRAGLIA SAID THAT ABOUT 140 ITALIAN COMPANIES
HAVE SOME KIND OF BUSINESS CONTACT WITH CUBA. MOST ARE
CONCENTRATED IN THE FOOD AND TOURISM INDUSTRIES. MIRAGLIA
REPORTED THAT ITALIAN EXPORTS TO CUBA IN 2003 TOTALED ABOUT
190 MILLION EURO WHILE IMPORTS FROM CUBA WERE AROUND 10
MILLION EURO - REPRESENTING A REDUCTION IN BILATERAL TRADE OF
ABOUT 20 PER CENT IN COMPARISON WITH 2002. HE STATED THAT
THIS DECREASE IN ECONOMIC ACTIVITY WAS, IN PART, A REFLECTION
OF THE HARSHER LINE TAKEN BY THE EU AND ITALY SINCE THE MARCH
2003 CRACKDOWN ON DISSIDENTS BY THE CUBAN GOVERNMENT.

ITALIAN AND EU POLICY TOWARDS CUBA
--------------


3. (C) ITALIAN POLICY TOWARDS CUBA FOLLOWS THE EU COMMON
POSITION ON CUBA, WHICH DATES BACK TO 1996 AND IS BASED ON
"CONSTRUCTIVE ENGAGEMENT," WHICH SUPPORTS "THE ENCOURAGEMENT
OF A PROCESS OF PEACEFUL TRANSITION TO A PLURALIST DEMOCRACY
AND RESPECT FOR HUMAN RIGHTS." ALTHOUGH THE JUNE 8 EVALUATION
OF THE EU COMMON POSITION REITERATED THESE OBJECTIVES, OUR
INTERLOCUTORS NOTE THAT RELATIONS WITH CUBA DRAMATICALLY
DETERIORATED TO AN ALL TIME LOW AFTER THE MARCH 2003
CRACKDOWN. NOTWITHSTANDING THE POLICY OF CONSTRUCTIVE
ENGAGEMENT, IN JULY 2003 ITALY (AS EU PRESIDENCY) LED THE EU
TO CONDEMN STRONGLY THE UNACCEPTABLE ATTITUDE OF THE CUBAN
GOVERNMENT TOWARDS EU DELEGATIONS IN HAVANA, TO CITE THE
DETERIORATION OF HUMAN RIGHTS ON THE ISLAND, AND TO ADOPT THE
FOLLOWING MEASURES: LIMITATION OF HIGH-LEVEL BILATERAL
GOVERNMENTAL VISITS; REDUCED PARTICIPATION IN CULTURAL AND
ECONOMIC EVENTS ORGANIZED BY CUBAN AUTHORITIES; AND
INVITATIONS TO REPRESENTATIVES OF THE POLITICAL OPPOSITION
AND FAMILY MEMBERS OF IMPRISONED DISSIDENTS TO NATIONAL DAY
CELEBRATIONS IN HAVANA.


4. (C) ON A BILATERAL BASIS, ITALY ALSO SUSPENDED COOPERATION
PROGRAMS IN JULY 2003 (WITH THE EXCEPTION OF HUMANITARIAN
AID),LIMITED HIGH-LEVEL BILATERAL MINISTERIAL VISITS (NO
BILATERAL VISITS HAVE OCCURRED DURING THE LAST SIX MONTHS)
AND REDUCED ITS PROFILE IN CULTURAL AND ECONOMIC EVENTS.
MIRAGLIA NOTED THAT THE EU COMMON POSITION HAS LED TO
INCREASED CRITICISM OF THE CUBAN GOVERNMENT AND HAS PROVIDED
AN IMPORTANT PLATFORM FOR MORAL SUPPORT FOR CUBAN CIVIL
SOCIETY AND DEMOCRATIC MOVEMENTS WHILE MAINTAINING ITS POLICY
OF CONSTRUCTIVE ENGAGEMENT. HE STRESSED THE NEED TO CONTINUE
ENGAGING CUBA IN ORDER TO OPEN FURTHER ITS ECONOMY.

COMMENT: TITLE III WAIVER
--------------


5. (C) WE BELIEVE THAT RENEWAL OF THE TITLE III WAIVER WOULD
NOT JEOPARDIZE US NATIONAL INTERESTS IN ITALY. RATHER, IT
WOULD HAVE A POSITIVE IMPACT ON OUR ALREADY STRONG BILATERAL
RELATIONS WITH ITALY AND THE PROSPECTS OF FURTHER COOPERATION
ON CUBA POLICY, AS EVIDENCED BY THE PAST YEAR'S ACTIONS TAKEN
BY THE EU AND BY ITALY. IMPOSITION OF THE TITLE III LIBERTAD
ACT MEASURES, IN CONTRAST, COULD HINDER US-ITALY COOPERATION
ON CUBA.

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2004ROME02517 - Classification: CONFIDENTIAL